IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J.
M/Praveen Electrical Engineering Works – Appellant
Versus
The State of Telangana and others – Respondent
W.P. No.42094 of 2022
Decided on : 31-01-2023
Constitution of India, 1950 - Article 226 - E-Tender - Irregularities in awarding of tender - Issue an appropriate Writ, Order declaring action of 3rd Respondent, in issuing impugned proceedings to allot contract and engage service of 4th respondent, in respect of e-Tender providing integrated Hospital Facility Management services in though they are not eligible as illegal - Held, Court opines absence of any specific malafides against Respondents Petitioner is not entitled for relief prayed for in present Writ Petition borne on record that Respondent was awarded contract to engage Sanitation Patient Care - Security Services for Integrated Hospital Facility Management Service proceedings respondent commencing Respondent already commenced work from Court opines of merits and the same is accordingly dismissed in limini - Writ Petition dismissed.
ORDER :
Heard Sri P.Venkanna, the learned Counsel for the Petitioner the learned Senior Counsel Sri G. Vidya Sagar, appearing on behalf of the 4th Respondent and the Learned Standing Counsel Sri Vijay Prashanth, for the 3rd Respondent.
2. The Present Writ Petition is filed to issue an appropriate Writ, Order or direction more particularly one in the nature of Writ of Mandamus, declaring the action of 3rd Respondent, in issuing the impugned proceedings Rc.No.32/DHH-KMR/Plg/2022 dt.22.09.2022 to allot the contract and engage the service of 4th respondent, in respect of e-Tender No.Plg/32/IHFMS/2022 dated: 15.07.2022, providing integrated Hospital Facility Management services in TVVP Hospital (MCH, Banswada), though they are not eligible, as illegal, arbitrary and violative of principles of natural justice, consequently set aside the impugned proceedings Rc.No.32/DHH-KMR/Plg/2022 dated.22.09.2022 issued by the 3rd respondent.
3. The case of the petitioner, in brief, is as follows:
a) The 3rd respondent i.e., Telangana Vidya Vidhana Parishad, had issued a e-Tender vide No.Plg/32/IHFMS/2022 dated 15.07.2022 for providing integrated Hospital Facility Management services in TVVP Hospital (MCH, Banswada) in Kamareddy District and the estimated value of the contract was Rs. 90,00,000/-(Rupees Ninety Lakhs). The bid started on 22.07.2022 and the closing date of the bid was 29.07.2022 and the said e-Tender contracts are reserved for SC Category.
b) Petitioner being promoted by its proprietor, who belongs to SC Category had bid for the e-Tender and Respondent No. 4 too have submitted their bid for the e-Tender even though they were not being promoted by the persons belonging to SC Category. The 3rd director of the 4th respondent had only been appointed on 27.04.2022, who belongs to SC category, for the purpose of participating in the e-Tender, as it had been reserved for SC Category only.
c) The action of respondent No.4 in appointing a director of SC Category is in violation of G.O.Ms.No.59 dated 21.05.2018 and hence, the tender of respondent no.4 should be rejected but the respondent no. 2 & 3 have accepted & opened their bids and put the petitioner under huge loss.
d) Instead of Section 4.2.3 (m) of E-Tender Document mandating submission of proof of SC Category, the respondent Nos.2 & 3 have issued the impugned proceedings Rc.No.32/DHH-KMR/Plg/2022, dated 22.09.2022 allotting and engaging the services of the 4th respondent for providing integrated Hospital Facility Management Services in TVVP Hospital (MCH, Banswada) in Kamareddy District.
e) The SC/ST Contractors Association, Telangana on 13.09.2022 have approached the 2nd respondent and have submitted a representation to comply with G.O.Ms.No.59 and decide the bids accordingly. Even then, the 2nd and 3rd respondents have allowed and opened the commercial bids of 4th respondent, which is in violation of Section 8.2.1. Even the petitioner had submitted their objections to the 2nd respondent on the illegalities committed under Section 4.2.3 and 4.2 of E-Tender Document.
4. The case of the respondents, in brief, is as follows:
a) The 4th respondent herein is a company, which is owned by Schedule Caste individual, holding a majority of 65% of the entire share capital of the company and is “owned” by persons from SC Community.
b) Reliance of petitioner on G.O.Ms.No.59, Irrigation and CAD (Reforms) Department, dated 21.05.2018 is inapplicable to the present tender and the applicable G.O as notified in the Tender Document is G.O.Ms.No.32, Health, Medical & Family Welfare (C2) Dept. dated 12.03.2022 and that the 4th respondent had complied with the conditions specified therein.
c) Out of the 6 bidders, who have submitted their bids, for the 2 (Two) Tender notifications issued by the 2nd respondent vide E-Tender No.Plg./32/IHFMS/2022 dated 15.07.2022 and Tender Notification No.Plg./32/ IHFMS/2022, dat
Jagdish Mandal vs. State of Orissa reported in (2007) 14 SCC 517
Tender conditions are binding and deviations lead to arbitrariness, violating fairness in the procurement process.
The court established that the principles of natural justice are not absolute in commercial transactions, particularly in tender processes, where public interest prevails.
The court established that significant deviations from tender guidelines and arbitrary evaluation criteria violate the principles of fairness and proportionality under Article 14 of the Constitution.
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